The deal gives TurnClear dedicated capital to fund new treatment plants and acquisitions of treatment businesses, and allows the company to scale its modern approach to water treatment.
Investment manager Nuveen is acquiring a majority stake in TurnClear, a water and wastewater treatment company owned by Crestview Partners-backed Upwell Water.
The transaction makes TIAA-owned Nuveen the controlling shareholder in TurnClear. Upwell Water will remain a major shareholder, a spokesperson for Crestview said.
The companies didn't disclose the value of the transaction, which comes more than five years after Crestview Partners provided Upwell Water with capital.
The deal, which was confirmed in a statementBloomberg Terminal, comes amid growing demand for water for data centers and investment opportunities in infrastructure and environmental remediation. Last year, the US water sector saw its biggest deal by total value since the 1990s, with American Water Works Co. agreeing to buy Essential Utilities Inc. in an all-stock transaction worth about $12 billion.
TurnClear provides decentralized water and wastewater treatment to commercial and industrial customers through a treatment-as-a-service model that allows clients to pay a monthly fee instead of a large upfront cost.
The Miami-based company builds, owns and operates treatment assets serving sectors including data centers, power generation, chemicals, mining and food and beverage, where demand is rising amid water scarcity and tighter environmental rules. The company works with industry partners including Aquatech International Corp. and Fluence Corp.
Chris Steinbaugh, senior director at Nuveen, said in a statement that TurnClear's treatment solutions help address "increased industrial activity, onshoring coupled with rising compliance requirements, complex treatment needs, and tight labor markets."
The Nuveen deal gives TurnClear dedicated capital to fund new treatment plants and acquisitions of treatment businesses. Hu Fleming, formerly president of Upwell Water's treatment division, will continue to lead TurnClear as chief executive officer.
Since Crestview's investment, Upwell Water has modernized aging pipes, pumps and treatment plants and built one of the largest private water supply and storage asset bases in the US, as deteriorating infrastructure drives long-term investment needs across the sector.
"With this spinout and infusion of growth capital from Nuveen, TurnClear is uniquely positioned to scale a modern approach to water treatment," Upwell Water CEO Tamin Pechet said.